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Strategies & Market Trends : Market Direction Predictions and BS guesses

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To: Rextar98 who wrote (171)6/8/2000 3:17:00 PM
From: the Chief  Read Replies (3) of 234
 
With MSFT break up official, the umbrella on software pricing is ripped apart. Over the next 24 months, expect pricing for all kinds of software to drift towards the marginal cost.. which is close to zero.! Expect resumption of the NASDAQ sell off in a short order. Deeper and more
brutal than the one that began on March 10th.


Thats funnier than the onion site!!<ggg> Software, by its very nature holds value if it fills a niche will little competition. Once the R&D is spent on the development the only cost associated with it is shipping packaging and handling.

I see the greater costs of packaging being a dead issue.....soon you will be able to go to all of the comapny websites and download the latest version of their software, either as an upgrade or as a new purchase. This elliminates the shipping/handling and packaging expense.

If software takes $3 million of R&D and the result is a server with a current copy being dowloaded to the masses, then I do see the price dropping but the margins "absolutely skyrocketing".

I use current copies of a number of business software products, I am already seeing the upgrades available on line, soon you will see software stores that have a glossy picture on a rack with a bar code attached. You will swipe the bar code, and the monitor above the rack will explain how the software works and why you should buy it. It will then ask you for your credit card number and e-mail address...by the time you get home you will have the brand new downloaded copy of "pokemon"!!...gggg

the Chief
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